Avoiding a Financial Disaster with Your Startup

Most startups fail in their first year, and when they do, it’s usually down to money one way or another. So, if you’re just starting out, it’s probably a good idea that you plan for a solid financial future and work out how you’re going to mitigate against potential financial disasters. Here are a few things that can help you with that…

Don’t Sink Everything into Your Startup

You might think that your business idea is wonderful; that it’s a sure thing, but that doesn’t mean that it really is – in business, there are no guarantees. That’s why you shouldn’t put every last cent you have into your new business. Keep something behind, and then, even if your business goes down, you won’t have a personal financial disaster to deal with too.

Build a Financial Cushion

When you’re creating your business plan and crunching the numbers, make sure that you allow for a financial cushion of between 3 and 6 months’ funds, so that if you’re having teething problems, or if you go through a dry spell, you can keep on moving in the right direction and avoid any serious financial calamities.

Protect Your Data

Modern businesses are all about data – well a  lot about data anyway – and data can be a great source of income. It can, however, also be a prime source of financial disaster, if it’s leaked, that is. That’s why, as soon as you start your company, you should ensure that you invest in server security, a good malware detection system, software that’s as good at protecting data as it is at simplifying file transfer procedures and even just locks that will prevent your data from getting into the wrong hands. Fail to do this, and you could end up on the wrong end of a lawsuit with a business in ruins before it’s even begun.

Take Out Insurance

You should not be operating a business, no matter how small, without some sort of insurance policy to cover any general negligence that you could be accused of and taken to the cleaners for. So, do your research and see what kind of coverage you need.

Implement Health and Safety Procedures

Another thing that could see you facing expensive legal action that could ruin your business is a lack of health and safety procedures. As an employer/ business owner, it is your duty to ensure that your staff and any visitors to your business are always safe.

Invest

Just because you are running your own business, doesn’t mean you have to plow all of your profits back into it and actually it’s a good idea to put some of the money you make into safe investments. That way, even if your business isn’t doing quite so well, you can make some money to keep things going, and you can have the peace of mind in knowing that not all of your cash is in tied up in a high-risk venture.

Financial problems are part and parcel of the business world, but if you’re smart, a financial disaster doesn’t have to be in your future.

Coupling Your Finances

Coupling your finances is a huge step. In some ways, even bigger than deciding to get married. In fact, many married couples today still have completely separate bank accounts and simply split everything evenly right down the middle. However, there are some huge advantages of mashing your finances together. It makes managing your family’s money much easier and can help avoid arguments and disagreements when it comes to paying for something new. But, there is a lot to think about. Here are some tips to help you get it right.

Be Sure

Once your finances are linked, to an extent, they are always linked. If you were to split up in the future, any credit check would show up your financial link. Their credit score could affect your own even if it was just a joint credit card. Make sure this is what you want before committing to share your money in any respect.

Keep Some Separation

One thing that worries people about merging their finances is not feeling like they have their own money or feeling like they have to ask for their partner’s permission to splurge a little. The occasional treat is a good thing, so if you want to keep some money for yourself, do it. Open a joint account but keep your own accounts too. Both commit to paying a certain amount a week into the joint account to cover household bills and expenses but keep any extra for yourself. There’s nothing wrong with craving a little financial independence.

Save

It’s a good idea also to open a joint savings account. Set up standing orders to both pay in a set amount each week or month and add more when you can. This way, you’ve always got some money if something unexpected crops up, without having to worry about dipping into your joint account.

Insurance

If anything were to happen to you, without the appropriate coverage from MeetFabric – AD&D Insurance your partner could be left struggling. Deciding to couple your finances is a huge step, so it’s also a great time to decide to protect each other and your family in the future.

Pay Off Debt

If either, or both of you are in debt, it can make the coupling more complicated. You shouldn’t expect your partner to be responsible for your debts, but you may struggle to make the same contributions to your joint accounts if you are paying off large debts. This can be hard for both of you to come to terms with. You’ll also have trouble getting accepted for the best accounts, or mortgages with large debts. So, it might be worth making a plan to pay off what you can before you complete your financial coupling.

Communication


Money is one of the biggest causes of marital arguments. The best way to avoid this is to talk. Be honest about what you’ve got and what you need, as well as how you feel. If you are worried that you can’t make the same contributions, tell your partner. If you have concerns that you are taking advantage, because you earn less, speak to your partner. This is something you must go into by being completely open with each other.

How To Find The Right Pension For You

A pension is a way of ensuring that once you have retired from work, you never have to worry about money again and you can enjoy this golden age of your life with the people you love. A pension is essentially a very very long investment you make into yourself from a young age, and which you continue to invest in for the entirety of your life before you stop working. But how do you find the best way to save up for a pension?

Of course, the most common type of pension is the one which your employer provides to you and which they will pay a percentage towards alongside you. Most people sign up for this type of pension because it is the most convenient and it saves having to look for their own, but is this the best type of pension for you?

Investment

If you think of your pension like an investment, there are plenty of ways you can accrue this money over the years to keep you stable later on in life. Invest,net is a broad field which covers a lot of ground, and this means you can invest your money into anything in order to save up for your future. For example you might decide to invest in the stock market. Every time you buy and sell a stock for profit you can buy another stock and then out any addition earnings into a savings account with high interest. If you do this every month for 40 years, you will likely make the same amount or more than going with a workplace pension scheme.

Service

Depending on the type of service you need, there will be different pensions schemes which will be the best for you. For example if you are disabled due to an injury or long standing illness, you might want to look at a disability pension benefits attorney to help you find the best deal. If you work from home and for yourself, you won’t have the option for a workplace pension so this will leave you with a state pension or a DIY option such as investment. The type of pension you choose will depend on your situation and circumstances.

A state pension is a great option if you aren’t financially stable enough to invest your money elsewhere, and although it will not offer the best returns it will give you the peace of mind to carry on with your life knowing you have that fund ready for you when you are older.
Make sure that you do some thorough research on every type of pension available to you, and even contact the government if you need some advice on what to do. There will always be people willing to help you find the right plan for your and this will mean you are sorted for the future and free to live your life knowing that you are looked after when you get older and need the money.